Publications: New Hospital Patient Billing Requirements Take Effect July 1st

The requirements of the Illinois Fair Patient Billing Act (the “Act,” at 210 ILCS 88/1 et seq.) take effect for hospital services provided on or after July 1, 2007. The Act was enacted at the urging of the Attorney General and requires hospitals to notify patients about available financial assistance, provide more detailed bills and limit the use of collection actions against uninsured patients.

Notification. Under the Act’s patient notification requirements, hospital admission and registration areas must post a sign1, along with either a brochure, application or other written material, informing patients about available financial assistance. As part of the admission process, insured patients are to be notified about out-of-network providers within the hospital.

Form of Bills. Hospitals must provide patients with bills that specify:

• the date(s) of service,
• a brief description of service(s),
• the amount due to hospital,
• hospital contact information for billing inquiries,
• a statement explaining how uninsured patients may apply for hospital financial assistance, and
• a notice of the option of an itemized bill.

Inquiries and Disputes. Hospitals must implement a process for patients to inquire about or dispute a bill. The Act also clarifies under what circumstances a hospital may pursue a collection action against an uninsured patient.

Website. Hospitals with websites are required to post a financial assistance availability notice, a description of the application process and an application in a prominent place.

Collection Contracts. Hospitals should review collection contracts for adherence to all applicable provisions of the Act, as hospitals must ensure that their vendors agree in writing to comply with the Act.

The Act is lengthy and requires specific compliance and should be read in full to understand all of its requirements. The foregoing is a reminder and brief summary of its provisions. Also, while the Act only applies to hospitals licensed under the Hospital Licensing Act or the University of Illinois Hospital Act, other nonprofit healthcare providers should consider adopting these measures. 

Read the entire Act here.

For further information on the Healthcare group or this update, please contact one of our related partners (at left).  

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1 The sign must read "You may be eligible for financial assistance under the terms and conditions the hospital offers to qualified patients. For more information contact [hospital financial assistance representative]." Depending on the patient population, signs may have to be posted in multiple languages.